STATISTICS

CHAPTER 7
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 Statistics
Definitions:
(1) Plural Sense:
In plural sense, the word statistics refer to
numerical facts and figures collected in a
systematic manner with a definite purpose in any
field of study. In this sense, statistics are also
aggregates of facts which are expressed in
numerical form.
For example, Statistics on industrial
production, statistics or population growth of a
country in different years etc.
(2) Singular Sense:
In singular sense,
STATISTICS refers to the
science comprising methods
which are used in collection,
analysis, interpretation and
presentation of numerical
data. These methods are used
to draw conclusion about the
population parameter.
For Example:
• If we want to have a study about the distribution
of weights of students in a certain college.
– First of all, we will collect the information on the
weights which may be obtained from the records of
the college or we may collect from the students
directly. ( COLLECTING DATA)
– The large number of weight figures will confuse the
mind. In this situation we may arrange the weights in
groups such as: “50 Kg to 60 Kg” “60 Kg to 70 Kg” and
so on and find the number of students fall in each
group. This step is called a PRESENTATION OF DATA.
– We may still go further and compute the averages
and some other measures which may give us
complete description of the original data.
• Kinds or Branches Statistics
(1) Descriptive Statistics:
– In descriptive statistics, it deals with
collection of data, its presentation in
various forms, such as tables, graphs and
diagrams and findings averages and other
measures which would describe the data.
• For Example: Industrial statistics, population
statistics, trade statistics etc… Such as
businessman make to use descriptive statistics in
presenting their annual reports, final accounts,
bank statements.
(2) Inferential Statistics:
In inferential statistics,
–it deals with techniques used for
analysis of data, making the estimates
and drawing conclusions from limited
information taken on sample basis and
testing the reliability of the estimates.
For Example: Suppose we want to have an idea about the
percentage of illiterates in our country. We take a
sample from the population and find the proportion of
illiterates in the sample. This sample proportion with
the help of probability enables us to make some
inferences about the population proportion. This study
belongs to inferential statistics.
 Functions or Uses of Statistics

(1) Statistics helps in providing a better

understanding and exact description of a
phenomenon of nature.
(2) Statistical helps in proper and efficient
planning of a statistical inquiry in any field of
study.
(3) Statistical helps in collecting an appropriate
quantitative data.
(4) Statistics helps in presenting complex data in
a suitable tabular, diagrammatic and graphic
form for an easy and clear comprehension of
the data.
(5) Statistics helps in understanding the nature
and pattern of variability of a phenomenon
through quantitative observations.
(6) Statistics helps in drawing valid inference,
along with a measure of their reliability about
the population parameters from the sample
data.
(7) Statistics is also used for
communication
(8) It provides basis for decision making.
(9) It enables manufacturers to compare
production processes .
(10) School officials may modify their
curricula on the basis of statistical
analyses of students achievements and
needs.
 Importance of Statistics in Different Fields

(1) Business: Statistics play an important role in

business. A successful businessman must be
very quick and accurate in decision making.
He can make correct decision about the
location of business, marketing of the
products, financial resources etc…
(2) In Economics:
Statistics play an important role in
economics. Economics largely depends
upon statistics. National income accounts
are multipurpose indicators for the
economists and administrators.
(3) In Mathematics:
Statistics plays a
central role in almost all
natural and social Bar Graphs and
sciences. The methods
of natural sciences are Histograms
most reliable but
conclusions draw from PRINCESS C. BARCEGA

them are only probable, APG SCHOOL, MANAMA, BAHRAIN

because they are based

on incomplete
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(4) In Banking:
Statistics play an important
role in banking. The banks make
use of statistics for a number of
purposes. The banks work on the
principle that all the people who
deposit their money with the
banks do not withdraw it at the
same time. The bankers use
statistical approaches based on
probability to estimate the
numbers of depositors and their
claims for a certain day.
(5) In State Management
(Administration):
Statistics is essential for a country.
Different policies of the government are
based on statistics. Statistical data are now
widely used in taking all administrative
decisions. Preparation of federal and
provincial government budgets mainly
depends upon statistics because it helps in
estimating the expected expenditures and
revenue from different sources. So statistics
are the eyes of administration of the state.
(6) In Accounting and Auditing:
Accounting is impossible without
exactness. But for decision making purpose, so
much precision is not essential the decision
may be taken on the basis of approximation,
know as statistics.
(7) In Natural and Social Sciences:
Statistics plays a vital role in almost
all the natural and social sciences.
Statistical methods are commonly used
for analyzing the experiments results,
testing their significance in Biology,
Physics, Chemistry, Mathematics,
Meteorology, Research chambers of
commerce, Sociology, Business, Public
Administration, Communication and
Information Technology etc…
(8) In Astronomy:
Astronomy is one of the oldest branch of
statistical study, it deals with the measurement
of distance, sizes, masses and densities of
heavenly bodies by means of observations.
During these measurements errors are
unavoidable so most probable measurements
are founded by using statistical methods.
Example: This distance of moon from the earth
is measured. Since old days the astronomers
have been statistical methods like method of
least squares for finding the movements of stars.
 History of Statistics
The Word statistics have been derived from Latin
word “Status” or the Italian word “Statista”, meaning
of these words is “Political State” or a Government.
Shakespeare used a word Statist in his drama Hamlet
(1602). In the past, the statistics was used by rulers.
The application of statistics was very limited but rulers
and kings needed information about lands, agriculture,
commerce, population of their states to assess their
military potential, their wealth, taxation and other
aspects of government. Even unscrupulous people
and gamblers made use of statistics.
 POPULATION AND SAMPLE

A population is a collection of data whose

properties are analyzed. The population
is the complete collection to be studied,
it contains all subjects of interest.
- a complete set of individuals, objects or
scores that the investigator or researchers
are interested in studying.
Object of research: students of San Isidro
National High School
 Population: all officially enrolled students
of San Isidro National High School.
 Population of fourth year students in SINHS
 Population of San Isidro Iraya Malilipot Albay
 Population of animals which are carnivorous.
 Population of fruit bearing trees.
A sample is a part of the population of interest, a
sub-collection selected from a population.
- a sample is a subset of a population.
o A complete sample is a set of objects from a
parent population that includes ALL such objects
that satisfy a set of well-defined selection criteria.
o An unbiased sample is a set of objects chosen
from a complete sample using a selection process
that does not depend on the properties of the
objects.
Example:
 Jeanalyn, Flordeliza, Amabelle, Delfen are
part of the population of IV – Einstein class
 Jeanalyn, Rachelle, Lain, Sanny, Marvin are
part of the population of fourth year students.
 Jeanalyn is taken from the set of samples of
IV – Einstein and fourth year students is an
unbiased sample.
 COLLECTING DATA
• Methods of Collecting Primary Data:
Primary data are collected by the following
methods:
• Personal Investigation: The researcher conducts the
survey him/herself and collects data from it. The data
collected in this way is usually accurate and reliable.
This method of collecting data is only applicable in case
of small research projects.
• Through Investigation: Trained investigators are
employed to collect the data. These investigators
contact the individuals and fill in questionnaire after
asking the required information. Most of the organizing
implied this method.
• Collection through Questionnaire: The
researchers get the data from local
representation or agents that are based upon
their own experience. This method is quick
but gives only rough estimate.
• Through Telephone: The researchers get
information through telephone this method is
quick and give accurate information.
• Methods of Collecting Secondary Data:
The secondary data are collected by the following
sources:
• Official: e.g. The publications of the Statistical Division,
Ministry of Finance, the Federal Bureaus of Statistics,
Ministries of Food, Agriculture, Industry, Labor etc…
• Semi-Official: e.g. State Bank, Railway Board, Central
Cotton Committee, Boards of Economic Enquiry etc…
• Publication of Trade Associations, Chambers of
Commerce etc…
• Technical and Trade Journals and Newspapers.
• Research Organizations such as Universities and other
institutions.
 OTHER METHODS IN COLLECTING DATA
 Direct or interview method
Questionnaire / indirect method
Registration method
Laboratory method
Observation method
Telephone interview method
ADVANTAGES AND DISADVANTAGES OF THE
DIFFERENT METHODS IN COLLECTING DATA
 SAMPLING
- Another way of collecting data.
TYPES OF SAMPLING TECHNIQUES
 Simple random sampling- sampling usually drawn
randomly like lottery, fish bowl etc.
 Systematic random sampling –
 Stratified random sampling